Using an innovative methodology, the Investment Reform Index 2010 (IRI 2010) monitors investment-related policy reforms in the economies of South-East Europe and compares these to best practices in the OECD area. Based on inputs from governments, the private sector, independent experts and multilateral organisations active in the region, the IRI 2010 assesses policies and institutional settings in eight fields of policy critical to domestic and foreign investors. These are: investment policy and promotion; human capital development; trade policy and facilitation; access to finance; regulatory reform and parliamentary processes; infrastructure for investment; tax policy analysis; and SME policy. For the economies examined, the IRI 2010 provides an independent and rigorous assessment of investment-related policy settings and reform against international good practice, guidance for policy reform and development and an evidence base with which to facilitate prioritisation of donor activities supporting investment and growth.

The process of European Union (EU) accession supported a lengthy period of economic growth in Romania and it is the country with the second highest GDP per capita in purchasing power parity in South-East Europe (SEE) at USD 12 600. Romania experienced average annual real GDP growth of more than 6% during 2003-07, increasing to 7.1% in 2008 (IMF, 2009). Growth has been particularly fuelled by strong domestic demand and investment. The annual average rate of inflation fell from 9% in 2005 to 4.8% in 2007. In 2008, as a result of rising world food and energy prices and rapid wage growth, inflation rose to 7.9%, although this is expected to drop sharply due to the economic crisis (IMF, 2009).